• Etoro is delisting four tokens (ALGO, MATIC, MANA, and DASH) for US customers starting July 12.
• This move follows similar actions by trading platforms in the US like Robinhood in June.
• These delistings are likely a result of the SEC’s recent enforcement strategy toward cryptocurrencies.
Etoro to Limit US Customers’ Access to Four Major Cryptocurrencies
Background on eToro
eToro is an Israeli multi-asset investment platform widely known for social trading.
eToro Delisting ALGO, MATIC, MANA, and DASH Tokens
According to a tweet by eToro, four tokens — ALGO, MATIC, MANA, and DASH — will be delisted starting July 12th as the company adjusts its cryptocurrency offering for customers in the US. The platform claims that the new change won’t have an impact on non-US customers and that US customers can continue to hold and sell any open positions in these tokens.
Similar Actions by Trading Platforms in the US
This move comes shortly after one similar one by Robinhood in June. Robinhood declared that they would be removing SOL, MATIC, and ADA from their platform due to “latest review”. With the SEC’s recent enforcement strategy toward cryptocurrencies, more businesses may follow in the footsteps of eToro and Robinhood in order to avoid regulatory issues that could further negatively impact users based in the US.
SEC Lawsuit Against Coinbase & Binance
eToro makes no mention of the SEC lawsuit against two largest cryptocurrency exchanges— Coinbase and Binance— however they claim it was taking this action “in light of recent developments” . In their most recent legal actions four tokens mentioned above were classified as securities.
Conclusion
Etoro’s decision to limit access to certain cryptocurrencies for U.S.-based customers is yet another example of how industry players can respond quickly when faced with regulatory uncertainty surrounding digital assets. It remains unclear what other measures companies may take going forward as related litigation plays out between exchanges and regulators around the world
